Forbearance on student loans - bad on my credit report?

[Joe Red]

Will going into forbearance on my student loans look bad on my credit report? The student loan allows for 36 months of forbearance, it's not the same as not paying it.

[tangerine19]

All missed and late payments are recorded in your credit history. Negative results in your credit history cost you. When you apply for loans, the lenders look at your credit history and determine how great a risk you are - how likely you are to repay money borrowed from them. The greater the risk, the higher interest rate they charge you.It's not just lenders who look at your credit history. When you purchase car insurance, your rates are based in part on your credit worthiness. Want to rent an apartment? Your credit history will be checked.Negative reports take 5 to 7 years to fall off.

[jengyk]

Forbearance is not considered as a negative factor unless it did not take into effect or you passed the period. I have taken forbearance at least 5 times since my lifetime and I have a credit score of over 740. So there should be no impact, just be careful that the forebearance is effect.

[The Big Shot]

You can put your loans in deferred status if you are unemployed or undergoing economic hardship. Talk with your lender. Unlike other loans, schools loans are not protected by bankrupcy, so the government can garnish your wages and collect.

[saxaphonist]

forbearance will not affect your credit rating in the long run, but if you qualify for forbearance, you are not likely to have the best credit situations currently. Your loans will still show as outstanding debt, you just wont have any late payment marks applied.Defferements work the same way.